Chapter 20: Liberalization Privatization and Globalization — Online MCQ Test
COMMERCE · CLASS 12th · Tamil Nadu State Board
Practice Chapter 20: Liberalization Privatization and Globalization with a free chapter-wise online MCQ test.
This chapter covers: Analyzing India 1991 New Economic Policy this chapter details Liberalization Privatization and Globalization reforms. Students evaluate advantages disadvantages economic impacts an....
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Chapter 20: Liberalization Privatization and Globalization — Important Questions & Answers
What does the term 'Liberalization' mainly refer to in the New Economic Policy of 1991?
- A. Removal of unnecessary government controls and restrictions
- B. Increasing public sector monopoly in all industries
- C. Stopping foreign investment completely
- D. Replacing private companies with government firms
Answer: A. Removal of unnecessary government controls and restrictions
Liberalization means reducing controls and opening the economy to greater competition and freedom for business activities.
Liberalization means reducing controls and opening the economy to greater competition and freedom for business activities.
Which of the following is a feature of Privatization?
- A. Transfer of ownership from government to private sector
- B. Increase in import duties on all goods
- C. More rules and licensing for industries
- D. Control of trade only by the government
Answer: A. Transfer of ownership from government to private sector
Privatization refers to reducing the role of the public sector and allowing private enterprises to own and manage businesses.
Privatization refers to reducing the role of the public sector and allowing private enterprises to own and manage businesses.
Which policy is associated with the reduction of licensing and permits for businesses?
- A. Liberalization
- B. Nationalization
- C. Protectionism
- D. Rationing
Answer: A. Liberalization
Liberalization reduces licensing and government restrictions so that businesses can function more freely.
Liberalization reduces licensing and government restrictions so that businesses can function more freely.
A consumer buys a foreign-branded mobile phone at a lower price because of global competition. This is an example of the impact of:
- A. Privatization only
- B. Globalization
- C. Nationalization
- D. Import substitution
Answer: B. Globalization
Globalization increases competition and often gives consumers access to better products at lower prices.
Globalization increases competition and often gives consumers access to better products at lower prices.
Which statement is the MOST accurate about the 1991 New Economic Policy in India?
- A. It completely ended the role of the public sector
- B. It introduced economic reforms to improve growth, efficiency and global integration
- C. It banned foreign trade to protect domestic industries
- D. It was limited only to banking and ignored industry and trade
Answer: B. It introduced economic reforms to improve growth, efficiency and global integration
The 1991 policy aimed to reform the economy by promoting growth, efficiency, and integration with the world economy, not by eliminating the public sector entirely.
The 1991 policy aimed to reform the economy by promoting growth, efficiency, and integration with the world economy, not by eliminating the public sector entirely.